EU says RRF reforms can be reversed after plans end

EU member states may reverse reforms introduced under their Recovery and Resilience Plans once those plans have ended, the European Commission told ECO, clarifying a point with implications for countries such as Portugal that linked major policy changes to EU recovery funding.

According to the Commission, the ban on reversing milestones and targets applies only while Brussels still has to assess whether any milestone or target has been satisfactorily met in a payment request. “The assessment of ‘reversals’ of milestones and targets is linked to the assessment of payment requests”, an official source told ECO. The same source said the relevant provision applies “while the Commission has to assess the satisfactory fulfilment of any milestone or target”.

Closure guidelines for the Recovery and Resilience Facility say member states should actively monitor the risk of reversals in 2026 to avoid affecting the assessment of final payment requests. The Commission did not specify to ECO whether this scrutiny ends after the last RRF payment is made or only after the final report is published.

The Commission added that it will continue to monitor implementation annually through the European Semester, including country-specific recommendations covered by RRF measures. Portugal had to complete 44 reforms under its plan to receive ten payments worth a total of €21.9 billion.

Under the RRF system, missed reforms could lead Brussels to suspend part of a payment. In Portugal, delays linked to professional orders reform and the transfer of health powers to municipalities led to the suspension of €714 million from the country’s third payment. For the final payment, countries no longer have the usual six-month window to complete missing milestones and targets, and any negative final assessment can lead to funding cuts or penalties.

Originally published at Eco.pt